The Bank of New York Mellon Corp. (BK) reported its fourth-quarter earnings Thursday. Here's what you need to know:
EARNINGS: Bank of New York Mellon reported a profit of $1.18 billion, or $1.08 a share. Analysts had expected earnings of 91 cents a share, according to FactSet. Results included a $427 estimated net benefit related to the Tax Cuts and Jobs Act.
REVENUE: Revenue decreased 2% to $3.73 billion, missing analysts' estimates of $4 billion. The difference is about the size of a charge related to the new tax law, which the bank said decreased total revenue growth by about 8%. Investment management and performance fees increased 13%.
TAX HIT: The company recorded a $320 million charge related to the new tax law. Investors aren't making much of the charges many banks have been recording because they are anticipated and are expected to be outweighed by the benefits of corporate tax cuts taking effect this year.
SEVERANCE CHARGES: Expenses grew 11%, partly due to $282 million of severance, litigation and other charges. Chief Executive Charles Scharf said the charges stemmed from an ongoing review of the bank's performance that it expects to complete by its investor event on March 8.
Write to Cara Lombardo at firstname.lastname@example.org
(END) Dow Jones Newswires
January 18, 2018 07:29 ET (12:29 GMT)